U.S. Geothermal Inc. (the "Company"), a leading renewable energy company focused on the development, production, and sale of electricity from geothermal energy, announced today its financial and operating results for the first 6 months ending June 30, 2014 (the "First Six Months"), and provided updated guidance for 2014, along with guidance for 2015. This earnings release should be read in conjunction with U.S. Geothermal's Second Quarter financial statement, which is available on the Company's website at www.usgeothermal.com and has been posted on SEDAR at www.sedar.com and at the U.S. Securities and Exchange Commission website at www.sec.gov.

Revenue for the First Six Months of 2014 was $14.35 million, compared to $12.06 million for the prior year period. EBITDA for the First Six Months of 2014 of $6.35 million, compared to $5.18 million in the prior year period. Net Income for the First Six Months was $1.24 million compared to $0.27 million in the prior year period. Net Income attributable to U.S. Geothermal for the First Six Months of 2014 was $0.19 million, or $0.00 per share, compared to $0.01 million, or $0.00 per share, in the prior year period.

"Our operations team has done an outstanding job during this first half of the year focusing on maximizing production from all of our facilities. We have reached the 2014 mid-point with very strong performance. All of our facilities achieved exceptionally high availabilities in the high 90's. The total generation from all of our units for the first half of 2014 was up 15% over the prior year period," said Dennis Gilles, Chief Executive Officer of U.S. Geothermal. "Our revenues for the first six months of 2014 were up 19% over the first six months of last year. Our EBITDA for that same period has risen approximately 22% over the prior year period, and our Net Income for that period has risen approximately 360% over the prior year period. We are very pleased with these excellent results. We wish to update our prior 2014 full-year guidance for our Operating Revenues to between $28 to $31 million, and our EBITDA estimate to between $14 to $16 million, and now provide 2015 full-year guidance for our Operating Revenues of between $27 to $32 million, and our EBITDA estimate of between $13 to $17 million."

U.S. Geothermal Inc. will host a telephone conference call for investors and analysts on Friday, August 15th, 2014 at 11:00 a.m. ET (9:00 a.m. MT) to discuss their 2014 2nd Quarter Financials (April 1st - June 30th, 2014), which will be filed after the Market Close on Thursday August 14th, 2014.

Generated fleet wide total of 74,384 megawatt-hours in the second quarter of 2014, yielding a total fleet wide generation for the first half of 2014 of 173,272 megawatt-hours compared to 150,341 megawatt-hours for the prior year period.

Completed the acquisition of the 26 megawatt WGP Geysers project in California.

Received a 12 month extension on the Sonoma County Conditional Use Permit for construction of a power plant, and an air quality permit to conduct flow testing of the existing production wells at the WGP Geysers project.

Acquired an additional surface lease at the El Ceibillo project in Guatemala and planned additional drilling.

Permitted three well sites for San Emidio Phase II and started drilling the first of those wells.

"Our focus on M&A activities remains very active," said Dennis Gilles, Chief Executive Officer. "During the first half of the year we completed the acquisition of the Western GeoPower Geysers project from Ram, we completed the acquisition of the lease positions associated with the Vale Oregon development project (separate from our Neal Hot Springs project), the expansion of our lease position at El Ceibillo in Guatemala, and we have numerous other projects in active due diligence. We are optimistic that several of these will come to fruition. We also continue to evaluate other strategic growth opportunities."

Reconciliation of EBITDA:

EBITDA is calculated as net income before interest, income taxes, depreciation and amortization, and is not a measurement of financial performance or liquidity under generally accepted accounting principles in the United States. EBITDA is presented as a metric commonly used by securities analysts, investors and other interested parties in the evaluation of a company's ability to service and/or incur debt.

U.S. Geothermal Inc. is a leading renewable energy company focused on the development, production and sale of electricity from geothermal energy and is operating geothermal power projects Neal Hot Springs, Oregon, San Emidio, Nevada and Raft River, Idaho. The company is currently developing a project at the Geysers, California, a second phase project at San Emidio, as well as El Ceibillo, an advanced stage, geothermal prospect located within a 24,710 acre (100sq km) energy rights concession area located 8.5 miles (14 km) from Guatemala City, the largest city in Central America.

The information provided in this news release may contain forward-looking statements within the definition of the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995. Readers are cautioned to review the risk factors identified by the company in its filings with US and Canadian securities agencies. All statements, other than statements of historical fact, included herein, without limitation, statements relating to the future operating or financial performance of U.S. Geothermal, are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or statements that events, conditions, or results "will", "may", "could", or "should" occur or be achieved. These forward-looking statements may include statements regarding perceived merit of properties; interpretation of the results of well tests; project development; resource megawatt capacity; capital expenditures; timelines; strategic plans; or other statements that are not statements of fact. Forward-looking statements involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from U.S. Geothermal's expectations include the uncertainties involving the availability of financing in the debt and capital markets; uncertainties involved in the interpretation of results of well tests; the need for cooperation of government agencies in the development and operation of properties; the need to obtain permits and governmental approvals; risks of construction; unexpected cost increases, which could include significant increases in estimated capital and operating costs; and other risks and uncertainties disclosed in U.S. Geothermal's Annual Report on Form 10-K for the year ended December 31, 2013 filed with the United States Securities and Exchange Commission and Canadian securities regulatory authorities and in other U.S. Geothermal reports and documents filed with applicable securities regulatory authorities from time to time. Forward-looking statements are based on management's expectations, beliefs and opinions on the date the statements are made. U.S. Geothermal Inc. assumes no obligation to update forward-looking statements if management's expectations, beliefs, or opinions, or other factors, should change.

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